Washington’s Russia pivot is geopolitical shift, carries message for India-US deal

Less than a month ago, the United States government enacted the Graham sanctions law, warning countries like India that they would face up to 100% additional tariffs for purchasing Russian oil. However, due to rising fuel prices at home, US President Donald Trump quickly struck a deal with President Vladimir Putin to buy Russian diesel.

The deal, which was put on hold in October, would see Russia supplying 3,00,000 tonnes of diesel immediately, with subsequent shipments totaling 4.8 million tonnes. In return, Russia received sanctions relief until April 7, 2027.

The reversal of US policy towards Russia has left India in a difficult position, as it can continue buying Russian oil while the penalties are suspended, but the threat of tariffs remains. This policy shift presents consequences for both India's energy security and ongoing trade talks. Washington's actions have been criticized by Ukraine and European allies, who argue that the deal legitimizes Moscow and weakens their leverage during negotiations.

Meanwhile, India and the US have reportedly reached an interim trade agreement under the February 6 Joint Statement, though the final terms and whether India should accept them remain uncertain.